KOTA KINABALU: Chief Minister Datuk Seri Musa Aman has called on industry players in Sabah to continue supporting the government’s effort to make Sabah a regional industrial and investment hub.
He said this was important in realizing the goal and ensuring Sabah can move its economic development forward with speed.
“I urge you to continue to support the government in pushing for Sabah to gain hub status. The government is all for options that could propel Sabah to economic prosperity. We see this happening should we achieve hub status,”he said when speaking at the Federation of Sabah Industries (FSI) 32nd anniversary dinner here, last night.
Musa, who is also Minister of Finance, said FSI, as a representative of the industry, especially manufacturers, has been working tirelessly in concert with the government and other trade associations for common causes, notably those affecting the industry in terms of high-cost of production.
The Federation, he said, has always highlighted issues that affect its members, the industry and the people in general.
He added FSI provides valuable input about the industrial sector to the government through its active participation in various consultative panels and committees which have helped in planning and formulation of relevant policies.
“I urge you to continue your good work. Let me assure you that the government listens and we are finding workable solutions to resolve outstanding issues,”he said.
The Chief Minister acknowledged that various government policy changes that were necessitated by our country’s quest to achieve a high-income economy by 2020 have impacted the industry.
He said the nation have just also crossed the threshold of the Goods and Services Tax (GST) introduction and recently, have seen the Ringgit depreciate.
The industries, he added, were also bracing for minimum wage hike to RM920 for Sabah effective 1st July, 2016.
“Therefore, industrialists must find creative ways to mitigate such impacts and must find ways to further diversify the economy, especially through downstream processing,”he said.
Musa assured that Sabah will offer ample potentials to be tapped ahead, including through the launch of the Pan Borneo Highway project under the 11th Malaysia Plan, which signifies enhanced logistical linkage between Sabah and Sarawak and the emergence of new markets, as well as enabling local companies to benefit from its construction.
Additionally, he said, Sabah Development Corridor will continue to attract more investments, and together with Kota Kinabalu being designated as growth catalyst city to enable economic growth, the future looks bright.
In this regard, he urged members and the industrial sector in general to look to FSI for possible ventures to tap these opportunities, particularly in developing new partnerships with foreign investors as a way to expand their business.
He noted that FSI has cultivated close working ties with foreign embassies and trade chambers globally, organising beneficial activities such as trade, marketing and investment missions, and business matching.
“I understand that FSI jointly with MICCI Sabah will be bringing in foreign and local business people and exhibitors together in the Sabah International Expo 2016 (SIE2016), happening in Kota Kinabalu from 15th to 18th September next year. Do take the opportunity to participate and explore new opportunities and possible joint ventures,”he said.
Musa also stressed that trade associations are important partners of the government and he looks forward to a continued partnership with FSI.
Meanwhile, FSI president Datuk Mohd Basri Abd Gafar said that this year’s anniversary dinner theme of “Sabah: Hub for the Far East – The Future Is Now” was a reflection of FSI’s continued vision to realize Sabah’s true potential as a hub, on not just manufacturing, but also on trading, transhipment and even tourism service.
He said Sabah can and should capitalize on its centralized geographical location within the Far East Region, the abundance natural resources it has for downstream activities and the potential in its human capital.
However, he said that the industry alone, without the support, participation and facilitation from the government, would not be able to achieve the hub status for Sabah.
On a separate note, he noted that FSI has set up a GST Technical Committee and working closely with the Customs Department to help its members deal with the complexities of GST compliance.
He also reiterated the federation’s call for the reduction of GST to 3%, increase the threshold for GST to RM3 million, and for refunds to be paid within the stipulated 14 working days to ease business cash flows.
“We believe that small and medium businesses could use some help to sustain and grow, amid constraints brought on by GST, Ringgit devaluation and the impending minimum wage hike,” he said.
He also announced that the federation was gearing up for the opening of the FSI Institute of Training, which will serve as a centre for industrial training and complement the government’s effort to create skilled human capital.